A payment facilitator is a company that provides payment processing services to merchants, allowing them to accept and process payments from their customers without having to handle the technical and security aspects of payment processing. Acting as an intermediary between the merchant and the payment processing network, the payment facilitator handles all transactions on behalf of the merchant and ensures that sensitive financial information is secure.

 A New Way to Pay

The payments industry encompasses the various systems, processes, and technology that facilitate the transfer of money between individuals, businesses, and other entities. In recent years, the industry has undergone significant changes due to advancements in technology, changes in consumer behaviour, and increased regulatory pressure.

A major trend in the payments industry has been the shift towards digital payments. Increasingly, consumers are relying on mobile devices and online platforms to make purchases, transfer money, and manage their finances. This has led to the development of new payment technologies, such as mobile wallets, digital currencies, and contactless payments.

Payment facilitators provide a comprehensive solution for merchants who want to accept payments online, in-store, or via mobile devices. This solution typically includes payment processing, customer support, and security features that help merchants to minimise their risks and comply with regulations.

The role of a payment facilitator is to handle the complex process of payment processing on behalf of merchants. This includes tasks such as payment authorisation, settlement, and funding. Payment facilitators typically work with acquiring banks and payment processors to ensure that all transactions are processed efficiently and securely. They also provide merchants with real-time reporting and tracking capabilities, allowing them to track transactions and view detailed information about their sales and payments.

Benefits of Payment Facilitators

There are several benefits of using a payment facilitator. These include potentially reduced cost, a wider range of available payment methods, increased security, and more convenient customer support and dispute resolution services.

One of the key benefits of using a payment facilitator is the increased level of security it provides. Payment facilitators are responsible for ensuring the protection of sensitive customer data, such as credit card information, and they use encryption and other security measures to minimise the risk of fraud and data breaches. In addition, payment facilitators often provide liability protection to merchants, meaning that merchants are not held responsible for any losses incurred as a result of fraudulent transactions processed through their systems.

Another benefit of using a payment facilitator is the convenience it provides. Payment facilitators handle all aspects of the payment process, including customer support, dispute resolution, and compliance with regulations. This allows merchants to focus on their core business operations rather than having to spend time and resources on payment processing and management. Payment facilitators also offer merchants the ability to accept a wider range of payment methods, including credit and debit cards, e-wallets, and digital currencies. This is particularly important for merchants who want to reach a global customer base and need to be able to process payments from customers in different countries and regions.

In addition to these benefits, payment facilitators can also help merchants to reduce their costs. Because payment facilitators are able to negotiate favourable rates and terms with acquiring banks and payment processors, they can often pass on these savings to merchants. This means that merchants can save money on transaction fees compared to processing payments directly with a payment processor.

Pros of using a payment facilitator:

  • Simplified setup: Payment facilitators provide a bundled solution that makes it easier for businesses to get started with accepting payments.
  • Lower underwriting requirements: Payment facilitators often have lower underwriting requirements compared to traditional payment processors, making it easier for small businesses to get approved.
  • Lower costs: Payment facilitators typically charge a flat rate per transaction, which can be more cost-effective for high-volume merchants than traditional payment processors that charge a percentage of the transaction amount plus a per-transaction fee.
  • Single point of contact: With a payment facilitator, merchants have a single point of contact for payment processing, underwriting, and other related services, which can simplify the process and reduce the risk of errors.

Drawbacks of a Payment Facilitator

There are, however, some drawbacks to using a payment facilitator, and it may not be the best idea for your business. While payment facilitators can provide a convenient and quick solution for processing payments, they may not be the best choice for a business.

Cons of using a payment facilitator:

  • Limited customisation options: Payment facilitators typically offer a standard set of services with limited options for customisation.
  • Reduced control over payment processing: By using a payment facilitator, merchants may have less control over the payment processing process, including the security measures and fraud detection systems in place.
  • Dependence on a single provider: Merchants that use a payment facilitator are dependent on a single provider for all their payment needs, which can be risky if the provider experiences any disruptions or goes out of business.

Businesses that are looking to process payments effectively and efficiently may be better off using a more customised and flexible solution that gives them more control over the payment process and provides access to important data and analytics. PayAlly offers a bespoke payment facilitation solution that will minimise the risks and give you all the benefits only an end-to-end payment lifecycle management partner can offer.


The arrival of payment facilitators has disrupted the payments industry by providing merchants with a more flexible, efficient, and cost-effective solution for accepting payments. With the ability to simplify the payment processing operation, reduce costs, and provide real-time access to transaction data, payment facilitators are poised to continue changing the payments landscape in the years to come. For a recommendation on the option that works best for you, contact us or visit our Payment Gateway page.